According to a recent analysis of the office market by CoStar Group, there was an increase in leasing transactions, but an overall decline in volume, driven mostly by shrinking lease sizes as tenants search for quality over quantity.
CoStar calculated the sector's biggest quarterly jump in two years as tenants sought out smaller spaces, with square footage signed projected to total 98.5 million in the second quarter, some 13% below the quarterly averages seen from 2015-2019.
The average lease signed in the second quarter was about 3,250 square feet, down from an average of roughly 4,050 square feet between 2015 and 2019 – or a drop of 20% below its pre-pandemic norms.
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